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Concentrated philanthropy: the new trends in Canadian giving
August 27, 2001
by Nicole Zummach
Since the recent release of the National Survey on Giving, Volunteering,
and Participating (NSGVP), much of the attention has been focused on declining
volunteer rates. To counterbalance these not-so-positive findings, the statistics
on charitable giving are somewhat more encouraging. Canadians are giving more
annually then they did when the last survey was compiled in 1997. An increase
of $20 in the average annual donation has translated into a total of approximately
$5 billion for charitable and nonprofit organizations, up from $4.5 billion
in 1997. Still, the percentage of people making contributions remains unchanged
at 78%. What has changed is the manner in which people are donating funds.
Donors are giving larger gifts to fewer groups
The survey reveals that donors made fewer contributions over the course of the
year but that each donation was larger. The total number of individual donations
dropped from 74 million in 1997 to 70 million in 2000, however the average single
donation rose from $60 to $70 over the same period.
Aside from the $5 billion in direct financial donations, Canadians also gave
$1.19 billion indirectly through a variety of fundraising efforts. Seventy percent
of the population over 15 years of age supported charities and nonprofits through
the purchase of goods, including chocolate bars, apples, poppies and coupon
books. The sale of raffle or lottery tickets (excluding government-sponsored
lotteries) was supported by 43% of Canadians, and 7% participated in charity-sponsored
events such as bingos or casinos. Although these numbers are relatively stable
compared with the 1997 results, there was a marked decline in charitable gaming
proceeds, which dropped to $330 million from $409 million.
Who is giving?
There are several factors that influence the likelihood that someone will donate
to a charity or nonprofit, including age, sex, income and education level. The
percentage of the population making donations tends to increase with age until
mid-life when it then declines again. The people least likely to donate are
those between the ages of 15-24 (64%) while the most likely donors are those
aged 35-44 (86%). Seventy percent of men and 81% of women donate to charity,
which is unchanged since 1997.
University graduates lead the way in donations, with 84% giving an average of
$480 annually, while only 68% of those with less than a high school education
donate funds to charity. As in 1997, employed individuals were more likely to
donate than either unemployed people or those not in the labour force. Eighty-two
percent of employed individuals made charitable contributions and the likelihood
of donating increased with income levels.
In 2000, 63% of people with a gross household income of less than $20,000 donated
to charity, while 86% of individuals making over $100,000 contributed, a drop
from 91% in 1997. At the same time, a high earner’s average annual amount
donated declined from $608 to $529. Interestingly, high-income earners also
gave a smaller percentage of their pre-tax income than donors with a lower household
income. Lower income households gave more than 1% of their earnings to charity
compared with those earning more than $100,000, who donated less than 0.5% of
their gross household income.
Giving across Canada
Provincial differences stood out in two areas: the percentage of the population
that donates, and the average annual value of donations. In terms of donation
rates, the Atlantic provinces showed an increase from 79% in 1997, to 87% of
the population donating in 2000. The prairies increased from 83% to 85%, and
Alberta’s donation rate jumped by 10% to 85% in 2000. New Brunswick, Quebec
and Ontario each saw a small decline in donor rates.
All provinces recorded an increase in the average annual donation except Nova
Scotia, Quebec and Saskatchewan. Manitoba topped the list of average annual
donations at $383, followed by Alberta with an average of $369. Prince Edward
Island and Manitoba both reported increases of 25% in average annual donations.
Where the money goes
Approximately one third of Canadians contributed to religious organizations
and these donations accounted for 49% of the total value of all donations in
2000. The survey also found that a religious affiliation increases the likelihood
that someone will donate. Of those people who reported a religious affiliation,
83% made a charitable donation, compared with 72% of those who reported no such
affiliation. Following religious organizations, health organizations were the
second largest beneficiary of charitable contributions, receiving almost 20%
of the total value of donations, up from 17% in 1997. Social services followed,
with 10% of total donations.
The survey found that Canadians show their financial support for others not
only by contributing to charities and nonprofit organizations but also by giving
directly to individuals in need. Twenty-eight percent of the population gave
money to a relative, 19% gave to homeless or street people, and 8% gave money
to other individuals.
Although statistics on charitable contributions can serve as important indicators
of the state of philanthropy, there are many factors which influence giving,
including social, cultural and economic circumstances. Monetary contributions
are only one way in which people support their communities. Next week, we will
focus on the intangible ways Canadians are giving back to their society.
To view the full report "Caring Canadians, involved Canadians: Highlights
from the 2000 National Survey of Giving, Volunteering and Participating"
visit www.nsgvp.org.
